Rep. Roger Wilder (R-71) has deferred his Louisiana sports betting tax increase bill, which would have raised the tax rate from 15% to 51%. The proposed increase would have placed Louisiana alongside New York, New Hampshire, and Rhode Island for the highest sports betting tax rate in the country.

The bill, HB 22, also aimed to prohibit operators from deducting promotional play credits from their taxable sports betting revenue. During the last fiscal year, operators deducted $44.35 million in promotional credits and paid $52.17 million in taxes. Under the proposed 51% rate, tax revenue would have increased to $182.68 million.

Wilder explained his bill was inspired by Louisiana's gray market slot machines, which return about 32.5% revenue to the state. However, he acknowledged the need for revision, stating, "The math doesn't math, the numbers don't make sense."

Industry representatives opposed the increase, citing market size differences. Wade Duty of the Louisiana Casino Association pointed out that New York's population of over 19 million dwarfs Louisiana's 4 million, with New York's sports wagering handle being eight times larger.

The iDevelopment and Economic Association (iDEA) warned that such a high tax rate could:

• Create a less competitive environment
• Discourage operator investment
• Force operators to scale back offerings
• Lead to increased consumer costs
• Potentially cause market exits

Wilder plans to continue working on the legislation and may reintroduce it with a lower tax rate, acknowledging that "Louisiana is not New York, Rhode Island, or New Hampshire."

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